Return of the old scene: Small investors stage a demonstration in front of the Dhaka Stock Exchange at Motijheel in the city on Monday in protest against the continuous fall of share prices for the last few days — FE photo by Shafiqul Alam 
Dhaka bourse Monday saw the biggest single-day fall in share prices in almost seven months as nervous investors continued on a selloff fearing further correction of recent bubbles.
Stocks registered the sharp fall although the securities regulator came forward last week with a set of measures, including reinvestment of the market stabilisation funds, to salvage the market from the ongoing freefall.
On Monday, the unrelenting market fall incensed a group of retail investors to stage demonstrations in front of the Dhaka Stock Exchange (DSE) building for half an hour, with an outcry for saving their money.
The market opened sharply lower, and the DSEX - the DSE core index - plunged 120.41 points or 1.71 per cent to settle at 6,885.29.
It was the biggest single-day slide in around seven months - since April 4 this year, when the DSEX lost 181.54 points as the investors dumped holdings amid growing tensions over impact of the virus-induced lockdown across the country.
The DSEX saw 191 points eroded in the past two consecutive sessions, while the market-cap lost Tk 126 billion in just two straight sessions.
Market-insiders said the market continued to bleed as a panic gripped the investors that the market would fall further.
In the last 10 trading days, the market had slumped in nine sessions, eroding more than 482 points or 6.54 per cent, panicking the retail investors.
At the end of Monday's session, the DSEX sank below 7,000 points, and settled at 6,885.29 with a loss of 1.71 per cent or 120.41 points.
Of the 376 issues traded, only 47 advanced, 307 declined and 22 remained unchanged following the daylong topsy-turvy.
On October 10, the DSEX closed at 7,367.99 points. Later, the broad index witnessed corrections, and finally came down to 6,885.29 on Monday with a loss of 6.55 per cent or 482.70 points.
Talking to the FE, experts and market operators said panic created among the investors, without any justified reason, intensified the fall in recent sessions.
Faruq Ahmad Siddiqi, a former chairman of the securities regulator, said the general investors, who purchased shares of weak companies, panicked following large-scale correction.
"This practice intensifies the market's plunge. Small-cap companies, which saw abnormal price hike, have affected the market badly."
He also said the market saw continuous rise of index during the pandemic as funds were shifted here from other sectors due to an awkward situation.
"Business activities have started to be normal now. That's why the funds injected in the stock market are likely to be shifted to other stipulated areas."
He, however, expressed optimism regarding rebound of the stock market.
Md. Sayadur Rahman, president of Bangladesh Merchant Bankers Association (BMBA), found no specific reasons behind the sharp fall of the market.
"Panic is the only visible reason that caused the recent corrections in the market."
He opined that the market could be termed overpriced if its P/E ratio was same or higher than those of other countries.
"Shares of 10-per cent listed securities may be overpriced. It does not mean that the overall market is overpriced. That's why the recent corrections are justified," he added.
Talking to the FE, a senior official of a leading brokerage firm said some regulatory decisions might have caused liquidity shortage on the market.
"The subscription of large-sized bond and two IPOs (initial public offerings) may be a factor behind squeezing liquidity on the stock market," he concluded.
To revive the market by enhancing liquidity flow, the securities regulator decided to disburse the Tk 9.0-billion market-stabilisation fund to the market operators.
Besides, the regulator decided to request the banks to support the market with their special fund worth Tk 2.0 billion each, approved earlier by the central bank.
Meanwhile, the securities regulator has asked the sponsor-directors of listed insurers to hold 60-per cent shares in line with the Insurance Companies Act.
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